HomeMy WebLinkAboutRes1994-093
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Sponsored by: Community Ho~ital Board
CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-093
ARESOLUTIONOFTImCITYCO~CaOFTImCITY
OF SEWARD, ALASKA, APPROVING A LINE OF CREDIT
FOR SEWARD GENERAL HOSPITAL AND APPROPRIATING
FUNDS FOR HOSPITAL RENOVATIONS
WHEREAS, in July 1993, the Seward Community Hospital Board requested a $300,000
line of credit from the city of Seward to assure the availability of sufficient operating funds
during the transition from private to public ownership of the clinic; and
WHEREAS, on August 9, 1993, the City Council approved Resolution No. 93-110,
establishing a $150,000 line of credit to provide what was then hoped to be sufficient operating
capital to see the hospital and clinic through the transition period; and
WHEREAS, it is now apparent that the hospital's first projections were accurate and an
additional $150,000 will be needed to meet cash flow needs until the clinic's collections reach
the estimated 85-90% of revenues which were originally projected; and
WHEREAS, the Community Hospital Board has requested that the Council extend the
additional $150,000 line of credit under the same terms as the original agreement; and
WHEREAS, in addition, the hospital is mandated to make certain facility renovations
to accommodate new X-Ray equipment which is due to arrive within the next few months; and
WHEREAS, the Community Hospital Board has requested a grant of $50,000 from the
city to cover the cost of the needed facility renovations;
NOW, THEREFORE, BE IT RESOLVED BY TIm CITY co~ca OF TIm
CITY OF SEWARD, ALASKA, that:
Section 1. The sum of $150,000 ofthe General Fund Fund Balance is hereby designated
as a line of credit for Seward General Hospital for the purpose of meeting operating needs of
the clinic, with such funds to be repaid to the city over a three-year period at an interest rate
equal to the rate established by the twenty year bond index.
Section 2. The sum of $50,000 is hereby transferred from the General Fund Fund
Balance through Account No. 101-3070 to Seward General Hospital for renovations to accommo-
date the hospital's new X-Ray equipment.
Section 3. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-093
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 27th
day of June, 1994.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
(City Seal)
THE CITY OF SEWARD, ALASKA
J;1~\B. 0~.
Dave W. Crane, Mayor
Anderson, Bencardino, Crane, Darling, Krasnansky & Sieminski
O'Brien
None
None
APPROVED AS TO FORM:
Wohlforth, Argetsinger, Johnson & Brecht,
Attorneys for the city of Seward, Alaska
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City Attorney